Business World

Wednesday 26 July 2017

Oil at three-month low on US supply

The London Stock Exchange in the City of London. Photo: Reuters
The London Stock Exchange in the City of London. Photo: Reuters
Donal O'Donovan

Donal O'Donovan

Shares in Aryzta plunged more than 9pc in early trading on Monday, in the immediate wake of the floundering baker's latest market update.

Shares fell to €27.9050 each after Aryzta announced further first-half losses and an accelerated exit for senior executives, including outgoing ceo Owen Killian. But the stock bounced back to close within 1pc of Friday's level at €30.70 a share.

On international markets, oil was the big news, hovered around three-month lows as rising inventories and drilling activity in the United States, offset Opec efforts to restrict crude output and reduce a global glut.

After more than two months of reduced Opec production the market is facing evidence that US production remains high and global markets remain oversupplied.

Gains in commodity producers lifted European stocks ahead of monetary policy cues from central banks expected as the week goes on. In London, with rising industrial metal prices boosting mining stocks, which snapped their longest losing streak since November 2015. The wider benchmark has climbed in March as traders priced in a potential US interest-rate increase amid hawkish comments by Federal Reserve officials.

The Iseq index of Irish shares was down slightly at 6,667.78 heading into the close.

Elsewhere, euro-area bonds were higher heading into the close, as 10-year German bunds bounced after yields failed to breach year-to-date highs at 0.50pc, supported by comments by the ECB's Frank Smets that were seen as pushing back on hawkish repricing of monetary-policy prospects.

The NTMA, here, announced plans to auction €500m of one-year Treasury Bills on Thursday.

Additional reporting by Bloomberg

Irish Independent

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